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Tag Archives: USDJPY

The USDJPY call option expired on July 17th………..worthless.

Premium loss was 0.48yen.

Bought a USDJPY call option expiring on Monday, July 17th with the following details: –

Spot: 113.25, Premium: 0.48, Breakeven: 113.73.

Let’s see what happens?!

On July 3rd when USDJPY crossed 113, I decided to take profit on my 1 month USDJPY call option.

The 1 month call option had an expiry date of July 10 and a BE of 110.52.

I squared the option at 113.20 for a whopping trading profit of 2.68 yen!!!

Now to continue monitoring the outstanding 3 month call option expiring in September which is in the money now.

FOMC is fixated on inflation and jobs creation and early this evening was the US; Retail Sales and CPI, which I felt would be a highly volatile event data.

So at about 8:14pm, I decided to put on my straddle on the EURUSD and USDJPY with the following details: –

EURUSD

Stop if Offered at 1.1170, Spot at 1.1202, Stop if Bid at 1.1230

USDJPY

Stop if Offered 109.90, Spot at 110.28, Stop if Bid at 110.58

SLs all established at 30bps away.

As it turned out CPI and Retail Sales bombed!

Both my EURUSD and USDJPY were triggered.

I followed the market till about 11pm and decided to square off my positions as follows: –

EURUSD squared at 1.1276

USDJPY squared at 108.97

Trading profit; USDJPY = 0.93yen and EURUSD = 46bps

Not bad, if I may say so myself.

On June 8, I decided to buy two USDJPY call options; a 1 month and a 3 month with the following details: –

1 month USDJPY call option expiring 10 July

Spot 109.50, Premium 1.02, B/E 110.52

3 month USDJPY call option expiring 8 Sep

Spot 109.50, Premium 1.68, B/E 111.18

I am confident that USDJPY will resume its march back up to 114.

Let’s see.

After ADP superby performance of 253K versus forecast of 181K, Wall Street and Main Street were anxiously awaiting NFP tonight.

Then again, there were many times when NFP surprised us all with a weaker number.

I decided to play my straddle to capture the market either way: –

Bought a EURUSD Put Option expiring Monday, June 5th; Spot 1.1215 and B/E 1.1189

Bought a USDJPY Put Option expiring Monday, June 5th; Spot 111.59 and B/E 111.26

As it turned out, the NFP number came in considerably weaker at 138K versus forecast of 181K and previous month was also adjusted lower.

The EUR strengthened agaisnt the USD, so my put option was useless.

However, the JPY strengthened against the USD and put my USDJPY put option into the money.

I decided to square the USDJPY put option at 110.57.  It was sufficient to offset the cost of both the options and left me with a decent 36 bps trading profit.

Yesterday, thought the NY Empire State Manufacturing PMI would be a volatile event.

So, placed two straddles; one EURUSD and the other USDJPY.

Unfortunately, despite the weak data, EUR and JPY hardly moved. I believed the world is on edge about the tension between North Korea and the USA.

So I withdrew both the straddle trades.

Volatility is low, so it’s increasingly more difficult to do intra day spot trades.

I felt the timing was more appropriate for options so decided to execute the following options: –

1 Month GBPUSD Put Option – Strike at Spot 1.2565, premium at 129bps and BE at 1.2436

1 Month USDJPY Call Option – Strike at Spot 108.85, premium at 1.43yen and BE at 110.29

Let’s see what happens.

I really did not know which way the market is going to move but there was enough buzz in the markeplace to generate sufficient volatility to do my straddle.

At about 1:56am Singapore time I decided to place two straddle trades with the following details: –

EURUSD; Stop if Offered 1.0600, Spot at 1.0630, Stop if Bid 1.0660

USDJPY; Stop if Offered 114.23, Spot 114.53, Stop if Bid 114.83

All SLs at 30bps away.

I decided to square the USDJPY 3 minutes after the announcement at 113.70 and the EURUSD 5 minutes later at 1.0690.

Trading profit of the USDJPY was 0.53yen and EURUSD 30bps.

Not too bad, was hoping for a bigger move, then again, we should be thankful for good and safe trading profits.

 

I decided to Long USDJPY at 112.90 with a SL at 112.70.

When USDJPY reached 113.35, I squared half the position for a trading profit of 45yen.

Later on when US opened, the USDJPY just didn’t seem to have any more steam and just when I almost decided to square the position at 112.93, it rebounded and I squared the position at 113.31 for a trading profit of 41yen.

What luck!